The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024 — the day Parliament was prorogued before the general election. It represents the most significant reform to the leasehold system in England and Wales since the Commonhold and Leasehold Reform Act 2002. But what does it actually mean for Section 20 major works bills? And what’s changing that you need to know about right now in 2025?
The honest answer is: some things are already in force, some things are not yet in force, and the full picture of how the Act interacts with Section 20 major works remains to be seen. Here’s what we know.
What the Leasehold Reform Act 2024 Does
The Act contains a wide range of provisions affecting leaseholders, but the most significant for our purposes are:
- Prohibition of new ground rents on residential leases: Already in force for new leases since June 2022 under the previous Leasehold Reform (Ground Rent) Act. The 2024 Act extends and strengthens this.
- Lease extension rights improvements: Leaseholders now have an improved right to extend their lease by 990 years (previously 90 for flats) at a peppercorn ground rent, and the valuation methodology has been reformed.
- Right to manage reforms: It’s now easier for groups of leaseholders to take over the management of their building without needing to prove fault with the existing manager.
- Service charge transparency requirements: New requirements for freeholders to provide more detailed information about service charges, in a standardised format. This is particularly relevant for major works.
- Estate charges: The Act extends some leasehold protections to estate charges levied by developers on new-build freehold estates — a previously unregulated area.
Service Charge Transparency: The Most Immediate Impact
For leaseholders dealing with Section 20 major works bills, the most practically relevant change in the 2024 Act is the enhanced transparency requirements for service charges. When these provisions come fully into force (expected in phases through 2025 and 2026), freeholders must:
- Provide service charge demands in a prescribed format
- Include more detailed information about costs and how they’ve been calculated
- Publish service charge accounts in a more accessible, standardised way
- Provide explanations for significant cost increases year-on-year
This greater transparency will make it easier for leaseholders to identify discrepancies and inflated charges — which is exactly what we do when we review bills. It doesn’t change the underlying law (Section 20 consultation requirements and the Section 19 reasonableness test remain in place), but it should make the information leaseholders need more accessible.
Does the Act Change Section 20 Consultation?
The core Section 20 consultation process — the two-notice requirement, the £250 threshold, and the consequence of non-compliance — is not fundamentally changed by the 2024 Act. What the Act does do is give leaseholders somewhat improved rights to challenge and improved access to information, which strengthens the existing framework rather than replacing it.
The government has indicated that further consultation reform may follow as secondary legislation under the Act, but as of 2025, the fundamental Section 20 structure remains as it was under the Landlord and Tenant Act 1985.
Right to Manage: A Powerful Alternative
One provision that has become significantly more accessible under the 2024 Act is the Right to Manage (RTM). Under RTM, a group of qualifying leaseholders can take over the management of their building from the freeholder — without needing to prove any wrongdoing, and without buying the freehold.
For leaseholders in a block where major works have been consistently overpriced or managed poorly, RTM offers a route to take control. You appoint your own managing agent, run your own tender processes, and make your own decisions about major works — subject to your lease obligations.
The 2024 Act has lowered the qualifying threshold for RTM (previously you needed more than 50% of leaseholders to participate; the threshold has been reduced) and simplified the process.
What Should You Do Now?
If you’ve received a Section 20 major works notice in 2025, the reforms don’t change your immediate position much — the consultation process and your challenge rights remain the same. But the direction of travel is towards greater transparency and stronger leaseholder rights.
Don’t wait for full implementation of the Act to act on an inflated bill. The law already gives you powerful tools to challenge unreasonable charges — and we’re here to help you use them.
Think your bill might be inflated? Get an independent assessment from Section20.org.uk — 48-hour turnaround, fixed fee. Email info@rapidqs.uk, WhatsApp us at +44 7438 628277 (5-minute response guaranteed), or fill in our contact form at section20.org.uk